Vocus Communications Limited
(ASX:VOC) has renewed a contract with its largest IP Transit customer Vodaphone New Zealand Limited at a lesser price than the prior year.
Under the contract the telecommunications provider will supply Vodaphone New Zealand international internet capacity.
Vocus advises the contract renewal is for 24 months at a fixed price in line with the market but the difference between contract prices from last year will impact its annual EBITDA.
While the company expects a $4.5 million reduction in EBITDA for fiscal 2015 it has affirmed very strong earnings growth expectations for the current financial year.
The news comes after Vocus inked a deal to buy New Zealand fibre provider FX Networks earlier this month for an enterprise value of $107.7 million.
Vocus Communications reported a net profit of $5.1 million in the first half of the 2014 financial year.
